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Attachment A - Staff report of September 17, 2024, including Ordinance 2451 and Senate Bill 329

Victorville City Council
November 19, 2024

Document
Attachment A - Staff report of September 17, 2024, including Ordinance 2451 and Senate Bill 329
Meeting
November 19, 2024
Body
Victorville City Council
Original file
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Text extracted from the city's file for reading and search. Open the original on victorvilleca.primegov.com. That file is the official record.

ATTACHMENT A
Item Number: 1
City Council / Board of Directors
Public Hearing(s)
Meeting of: September 17, 2024
Submitted By:

Andre de Bortnowsky, City Attorney

Subject:

Introduction of proposed Ordinance No. 2451, amending Sections 2.16.020 and 2.16.030 of Chapter 2.16 of the Victorville Municipal Code, for the purpose of adjusting the salaries of members of the Victorville City Council pursuant to Senate Bill 329 Recommendation:

That the Honorable City Council:
(1) Open and conduct the public hearing;
(2) Introduce Ordinance No. 2451 for adoption and first reading by title only; and (3) Waive further reading in full of proposed Ordinance No. 2451.

Fiscal Impact:

There is no fiscal impact associated with this action at this time. However, when the salary increase becomes effective following the November 2024 election and the seating of new City Council members in December as discussed herein, the monthly salary amount paid to each City Council member will be increased from $1,200.00 to $1,900.00.

Strategic Plan Goal:

This item aligns with Strategic Plan Goal “E” – Organizational Effectiveness and Sustainability
Background:

At the regular City Council meeting on August 20, 2024, it was moved by Council Member Jones and approved by a majority vote of the City Council to agendize an item for discussion and possible action regarding City Council monthly compensation. The motion included a request that the monthly compensation for City of Victorville City Council members be increased consistent with Government Code (GC) Section 36516, as recently amended by Senate Bill (SB) 329.
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In accordance with existing law (GC Section 36516.5), such increase would become effective after the 2024 general municipal election results are certified and new City Council members serving staggered terms are seated in December of 2024. GC Section 36516 requires that city council salaries be set and/or amended by passage of an ordinance. Proposed Ordinance No. 2451 (Attachment A) has been drafted accordingly and is attached for City Council consideration.

Discussion:

Victorville Municipal Code (VMC) Section 2.16.020 specifies the salary that is received by its City Council members. Said salary is currently $1,200.00 per month. Since being set at $500.00 per month in 1993 based on the City’s then-current population, the City Council’s salary has periodically been increased using the five percent (5%) per calendar year formula in GC Section 36516. This formula was adopted by ordinance and is codified in VMC Section 2.16.030. The last salary increase became effective in December of 2022, after two new City Council members were sworn into office following the November 2022 general election.

Effective January 1, 2024, SB 329 (Attachment B) revised GC Section 36516 to adjust for inflation the population-based maximum monthly salary amounts that city council members may receive, as those amounts had remained static since 1984. In cities with populations of 75,000 to 150,000 (such as Victorville, which has a population of 134,810 according to 2020 census figures) GC Section 36516 now permits council member salaries to be set at an amount up to $1,900.00 per month, provided such salary is set by an ordinance which includes findings demonstrating the need for the increase.

Revised GC Section 36516 also provides the following new formula for calculating future salary increases: “[A]n amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year.” As this new formula is an alternative to the current 5% formula (SB 329 permits the use of either formula, whichever produces the greater amount) the new formula will be set forth in VMC Section 2.16.030, together with the 5% formula. However, neither formula is applicable at this time, as the proposed increase to $1,900.00 is based on the new population maximum salary amounts provided for in SB 329.

Proposed Ordinance No. 2451 amends VMC Sections 2.16.020 and 2.16.030 as discussed above, and the eleventh (11th) Recital on page 2 includes findings demonstrating the need for the increase. As required by GC Section 36516.5, the new salary amount will be effective as of the first City Council member pay period that commences on or after the date new Council members are sworn into office in December following the certification of the November 2024 election results. A blackline comparison showing the proposed changes to the VMC is included as Attachment C.

Staff remains available for any questions or comments you may have. 3 7
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Attachments: A. Ordinance No. 2451
B. Senate Bill (SB) 329
C. Blackline Comparison

ATTACHMENT A

ORDINANCE NO. 2451

ORDINANCE NO. 2451

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
VICTORVILLE, CALIFORNIA, AMENDING SECTIONS 2.16.020 AND

2.16.030 OF CHAPTER 2.16 OF THE VICTORVILLE MUNICIPAL CODE (“CITY COUNCIL COMPENSATION”) FOR THE PURPOSE OF

SETTING THE NEW MAXIMUM MONTHLY SALARY FOR

VICTORVILLE CITY COUNCIL MEMBERS BASED UPON CURRENT

POPULATION AND PROVIDING FOR FUTURE ADJUSTMENTS IN
SAID SALARIES PURSUANT TO SENATE BILL 329

WHEREAS, California Government Code Section 36516 (“ Section 36516”) previously authorized a city council to enact an ordinance to provide each member of a city council a salary based upon the population of the city (which amounts were set forth in said Section in 1984) and to further increase said salary by ordinance or by an amendment to an ordinance ; provided, however, that the amount of the increase did not exceed an amount equal to five percent (5%) for each calendar year from the operative date of the last adjustment of the salary; and WHEREAS, Section 36516 further provided that a city’s population for purposes of such salary increases would be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance; and WHEREAS, in accordance with the previous version of Section 36516 and based upon the City of Victorville’s population in 1993 (which was between 50,000 and 75,000) , the City Council of the City of Victorville (the “City Council”) adopted an ordinance which provided for a monthly salary of five hundred dollars ($500) to be paid to members of the City Council and subsequently amended said ordinance to permit the five percent (5%) calendar year increases and further adopted amendments to said ordinance to implement such salary increases; and WHEREAS, California Government Code Section 36516.5 (“Section 36516.5”) prohibits an adjustment in salary during a city council member’s term of office, but permits such adjustment in the salary of all city council members serving staggered terms to take effect when at least one city council member commences a new term; and
WHEREAS, the City Council members serve staggered terms, and the operative date of the last adjustment in City Council salary occurred in December 2022, after certain City Council members commenced a new term, and the adjustment was an increase to an amount equaling One Thousand Two Hundred Dollars ($1,200.00) per month; and WHEREAS, to account for inflation, Section 36516 was amended by Senate Bill (SB) 329 effective January 1, 2024; and
WHEREAS, Section 36516 now provides for: (1) new maximum monthly salary amounts for members of city councils based on city population; and (2) subsequent increases to such population-based salaries, provided such population- based salary amounts and subsequent increases are adopted by an ordinance or an amendment to an ordinance which includes findings demonstrating the need for a salary increase; and
W HEREAS , Subsection (a)(2) (D) of Section 36516 now specifies that i n cities having over 75,000 up to and including 150,000 in population, said monthly maximum city council salary may be set by ordinance in an amount up to and including one thousand nine hundred dollars ($1,900) per month; and
WHEREAS, pursuant to the last preceding federal (2020) census, the population of the City of Victorville (the “City”) was 134,810; and
WHEREAS, the City Council members serve staggered terms and at least three members shall commence a new term in December 2024, following the certification of the November 5, 2024 election results and the swearing in of such new members at a meeting held to be held in December 2024 specifically for that purpose; and
WHEREAS, the City Council finds that the cost of living has increased significantly since the last salary increase, including, but not limited to, such things as the cost of housing, the cost of gasoline and energy, the cost of food and services along with everyday household items, all of which have contributed to inflation rates that have hit 40 year highs and which has led to economic challenges for the City’s residents, including Council m embers and which, in the case of council members, many of whom do not have full time jobs, can be mitigated to a small extent by and increase in City Council monthly compensation; and
WHEREAS, based upon such findings, the City Council finds it necessary and proper to adopt this Ordinance to increase by means of an amendment to Victorville Municipal Code (“VMC”) Section 2.16.020, the amount of salary received by members of the City Council, in accordance with revised Section 36516, which amount shall be One Thousand Nine Hundred Dollars ($1,900.00) per month, such increase to be effective only on or after the date such new City Council members assume office in December following certific ation of the November 2024 general municipal election results; and
WHEREAS, as amended by SB 329, Section 36516 now provides an additional method by which future adjustments to the population-based salary of city council members may be made; and
WHEREAS, the current version of VMC Section 2.16.030 only provides that any increase in salary cannot exceed an amount equal to five percent (5%) for each calendar year from the operative date of the last adjustment of the salary; and WHEREAS, the City Council further deems it desirable to adopt this Ordinance to amend VMC Section 2.16.030 to include the additional method for making future adjustments to the City Council salary.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. R
ecitals
T he recitals set forth above are true and correct and together with any definitions set forth therein are hereby incorporated into this Ordinance by this by this reference.

Section 2. Amendment of Sections 2.16.020 and 2.16.030 of Chapter 2.16 (“City Council Compensation”) of the Victorville Municipal Code

SECTIONS 2.16.020 and 2.16.030 OF CHAPTER 2.16 OF THE

VICTORVILLE MUNICIPAL CODE ARE HEREBY AMENDED IN
THEIR ENTIRETY TO READ AS FOLLOWS:

2.16.020 Salaries – Amount.

Each member of the City Council shall receive as salary the sum of One Thousand Nine Hundred dollars ($1,900.00) per month, which shall be payable at the same time and in the same manner as salaries are paid to other officers and employees of the City. Said salary shall become payable only on and after the date upon which one or more members of the City Council become eligible therefor by virtue of beginning a new term of office following the next succeeding general municipal election held in the City following the effective date of the ordinance adopting this Section.

2.16.030 Salaries - Increase.

The salary payable to each member of the City Council as set forth in Section 2.16.020 may from time to time be increased by ordinance or by an amendment to an ordinance of the City Council; provide d, however, that any increase cannot exceed the greater of either : (i) an amount equal to five percent (5%) for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted ; or (ii) an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index which amount shall not exceed ten percent (10%) per each calendar year ; provided, further, that the salary as so increased shall only become payable effective as of the date specified in the second sentence of Section 2.16.020.

Ordinances amending salaries shall include findings demonstrating the need for the increase and shall be adopted as set forth in Government Code Section 36516(g).

Section 3. Repeal of Conflicting Provisions
All the provisions of the Victorville Municipal Code as heretofore adopted by the City of Victorville that are in conflict with the provisions of this Ordinance are hereby repealed.

Section 4. Severability
If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining sections, subsections, sentence, clause, phrase, or portion of this ordinance. The City Council hereby declared that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

Section 5. E ffective Date
T his Ordinance shall take effect thirty days (30) days after its final passage by the City Council; however, the effective date of the increased salary amount will be determined in accordance with Section 2.16.020 of the Victorville Municipal Code, but shall in no event occur prior to the first Council Member pay period which commences on or after the date the new Council Members are sworn into office in December of 2024.

Section 6. Cert ification
T
he City Clerk of the City of Victorville is hereby directed to certify to the passage and adoption of this Ordinance and to cause it to be published in the manner required by law.

ATTACHMENT B
SENATE BILL (SB) 329
Senate Bill No. 329
CHAPTER 27
An act to amend Section 36516 of the Government Code, relating to local government. [ Approved by Governor June 29, 2023. Filed with Secretary of State June 29, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST
SB 3
29, Dodd. Cities: city council members: compensation.

Existing law authorizes a city council to enact an ordinance to provide each member of the city council a salary based upon the population of the city, as specified. Existing law authorizes that amount to be increased by the city council by an amount that does not exceed 5% for each calendar year from the operative date of the last adjustment of the salary that is in effect when the increase is enacted. Existing law provides for the procedures by which a city may enact ordinances.

This bill would increase the maximum amount of salary, based upon the population of the city, that may be approved by an ordinance passed by the city council, as specified. The bill would authorize the salary of council members to be increased beyond the specified maximums to an amount not exceeding the greater of either 5% for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted, or an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10% for each calendar year. The bill would require the city council to consider the adoption of an ordinance to increase council member compensation in open session during at least 2 regular meetings of the city council.

DIGEST KEY
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

BILL TEXT

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS
FOLLOWS:

SECTION 1.

The Legislature finds and declares all of the following:
(a) The compensation schedule for general law cities has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation. (b) Allowing cities to adjust their compensation for inflation since 1984 may help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to hel p ensure that they can continue to serve the public and support their families.

SEC. 2.

Section 36516 of the Government Code is amended to read:
36516.
(a) (1) A city council may enact an ordinance providing that each member of the city council shall receive a salary based on the population of the city as set forth in paragraph (2). (2) The salaries approved by ordinance under paragraph (1) shall be as follows:
(A) In cities up to and including 35,000 in population, up to and including nine hundred fifty dollars ($950) per month.
(B) In cities over 35,000 up to and including 50,000 in population, up to and including one thousand two hundred seventy-five dollars ($1,275) per month.
(C) In cities over 50,000 up to and including 75,000 in population, up to and including one thousand six hundred dollars ($1,600) per month.
(D) In cities over 75,000 up to and including 150,000 in population, up to and including one thousand nine hundred dollars ($1,900) per month.
(E) In cities over 150,000 up to and including 250,000 in population, up to and including two thousand five hundred fifty dollars ($2,550) per month. (F) In cities over 250,000 population, up to and including three thousand two hundred dollars ($3,200) per month.
(3) For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance.
(4) The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed the greater of either of the following:
(A) An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted. (B) An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year. (5) No ordinance shall be enacted or amended to provide automatic future increases in salary. (b) Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner. (c) Unless specifically authorized by another statute, a city council may not enact an ordinanc e
p
roviding for compensation to city council members in excess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, committee, board, authority, or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar body.
(d) Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary under this section, provided that the same benefits are available and paid by the city for its employees. (e) Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section.
(f) A city council member may waive any or all of the compensation permitted by this section. (g) (1) For the purposes of this section, a city council shall consider the adoption of an ordinance to increase compensation in open session during at least two regular meetings of the city council. (2) At the first meeting, the city council shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation. The ordinance shall not be adopted at the first meeting.
(3) At least seven days after the first meeting, the city council shall hold a second meeting to consider whether to adopt the ordinance.

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